ATC180314: Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation on the report of the Third Quarter Perfomance for Budget Vote 12: Statistics South Africa: Dated 14 March 2018

Public Service and Administration

Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation on the report of the Third Quarter Perfomance for Budget Vote 12: Statistics South Africa: Dated 14 March 2018

1. BACKGROUND

The Portfolio Committee on Public Service and Administration as well as Planning, Monitoring and Evaluation (hereinafter referred to as the Committee) having considered third quarter performance for 2017/18 financial year of Statistics South Africa, reports as follows:

 

1. INTRODUCTION

 

Parliament through its Committees has a constitutional responsibility to oversee quarterly programme performance information of the departments and their entities throughout a particular financial year. Quarterly performance reports are a vital tool used by parliamentary Committees to ensure accountability and transparency to assess both financial and non-financial performance of the departments and their entities. In terms of the Public Finance Regulations, departments and their entities are expected to prepare quarterly report within 30 days after the end of each quarter.

On 21 February 2018, Statistics South Africa (Stats SA) presented the second quarter performance report before the Committee. Thereafter, the Committee considered the third quarter performance of 2017/18 financial year of the Stats SA. The performance information was in accordance with Stats SA Strategic Plan, Annual Performance Plan and Medium Term Strategic Framework of the government.

The report below provides an overview of the presentation made before the Committee is mainly focusing on the achievements, output in respect of the performance indicators and set targets for the above mentioned financial year. The report outlines the findings/observations made by the Committee. 

 

 

1. PROGRAMME PERFORMANCE

Stats SA has achieved 87% of targets scheduled for the third quarter, 5.3% of targets were achieved earlier than scheduled, 10.2% of targets were achieved later than scheduled and 8.4% have been delayed.  

Stats SA’s adjusted baseline allocation for 2017/18 was R2.177 billion. Of the allocated budget, 62.1% is for compensation of employees, 23.2% was for goods and services, 14,1% was for payment for capital assets and 0.6% was for transfer. The departmental actual spending as at 31 December 2017 amounted to R1.0575 billion, which was 72.3% of the baseline budget allocation.  The department available budget excluding commitments amounts to R602 million. The department was projecting an overspending of R102.412 million in the 2017/18 financial year, mainly on compensation of employees and operational costs.

1. Programme 1: Administration

The purpose of the programme is to manage the department and provide centralised support services and capacity building. It coordinates statistical production among organs of state in line with the purpose of official statistics and statistical principles. The programme contributes to two strategic objectives: leading the development and coordination of statistical in the South African National Statistics System (SANSS) and improving productivity and service delivery.

Under programme 1, Stats SA has achieved 67% of targets scheduled for the third quarter and 33% have been delayed.

1. Programme 2: Economic Statistics

The Economics Statistics programme produces economic statistics to inform evidence-based economic development and transformation in line with internationally recognised practices. Programme Management for Economic Statistics provides strategic direction and leadership.

Programme 2 on Economic Statistics had achieved 100% of its targets scheduled for quarter 3.

 

1. Programme 3: Population and Social Statistics

The purpose of the programme is to produce population, demographic, labour market and social statistics to meet user requirements in line with internationally recognised practices. Population and social statistics inform evidence-based socio-economic development and transformation in line with internationally recognised practices. Programme 3 contributes to the strategic objectives in an effort to expand the statistical information base by increasing its depth, breadth and geographic spread for evidence-based planning, monitoring and decision-making for the use by both the public and private sector.

Programme 3 had achieved 50% of its scheduled targets in the quarter 3, and 50% had been delayed.

 

1. Programme 4: Methodology, Standards and Research

The purpose of the programme is to provide expertise on quality and methodology for official statistics, standards for conducting surveys, and business sampling frames. In addition, it conducts policy research and analysis on emerging policy matters. The programme contributes to enhancing public confidence and trust in official statistics.

Programme 4 had achieved 67.7% of its scheduled targets in the quarter 3, and 33.3% had been delayed.

 

1. Programme 5: Statistical Support and Informatics

This programme aims to enable service delivery programmes by using technology in the production and use of official statistics. It informs policy through the use of statistical geography. The programme promotes and provides better access to official statistics. The programme contributes towards enhancing public confidence and trust in statistics and investing in the learning and growth of the organisation. Moreover, the programme collaborates with partners to build and maintain a reliable sampling frame for household surveys by updating the spatial information frame annually.

There were no targets scheduled for quarter 3 on programme 5.

 

1. Programme 6: Statistical Collection and Outreach

The purpose of the programme is to provide data collection and dissemination services to inform policy processes and to support decision-making through statistical information. In addition, engaging stakeholders through platforms and providing effective communication services. Promoting statistical development and cooperation in South Africa, Africa and the world is also one of the crucial functions of the programme.

Programme 6 had achieved 78.9% targets scheduled for quarter 3, whilst 21.1% were achieved earlier than scheduled; 5.3% were achieved later than scheduled and 5.3% had been delayed.

1. Programme 7: Survey Operations

The purpose of the programme is to coordinate survey operations for household surveys and provide processing services to produce official statistics. The programme conducts independent household survey monitoring and evaluation activities. The programme contributes towards improving productivity and service delivery. Expanding the statistical information base for use by government, the private sector and the general public by conducting a population census every 10 years as well as large-scale population surveys between censuses is one of the focus areas.

Programme 7 had achieved 100% of targets scheduled for quarter 3.

 

1. FINDINGS AND OBSERVATIONS

 

The Portfolio Committee made the following observations and findings:

1. The Committee noted Stats SA third quarter performance for 2017/18 financial year.

 

1. The Committee noted with grave concern budget shortfall of R11 309 million on the operational cost mainly due to the Community Survey 2016 dissemination. The Committee was of the view that persisting budget shortfall impede on the production of statistics and should again be addressed with the Minister of Finance and Minister of Planning, Monitoring and Evaluation.

 

1. The Committee noted with discontent projected overspending on compensation of employees amounts to R91 103 million and mainly caused by a budget that was reduced by R141 million in 2017/18 financial year. The Committee was gravely concerned about the possibility of Stats SA not being able to pay salaries as a result of budget shortfalls on compensation of employees in March 2018. The Committee will once again raise the matter with MINCOM BUD dealing with government appropriations and budget adjustments. Budget shortfall experienced by Stats SA might impede the quality of statistics in the country and compromise the institution in a long term.

 

1. The Committee noted that the budget shortfall in Statistics South Africa might impact on the statistical surveys such as Consumer Price Index and Producer Price Index. The Committee urged the National Treasury to consider budget shortfall of Statistics South Africa prudently.  

 

1. The Committee advised Stats SA to leverage on the information technology in an effort to collect data cheaper for the purpose of reducing cost of labour intensity and for producing quality statistical releases. The Committee emphasised that migration of manual data collection to the electronic data collection using gadgets should continue simultaneously to complement each other in producing reliable and quality statistics. Stats SA should be at the centre of innovation and modernisation so that data collection could be easier and cheaper.

 

1. The vacancy rate is another major factor that impact on the efficiency of Statistics South Africa in executing its mandate. Critical posts have not been filled due to the budget shortfall on the compensation of employees.  Stats SA has 13.7% vacancy rate, which is equated to 350 funded posts. Of total 350 funded posts, 145 funded vacant posts are critical to fill, e.g economist and statisticians.         

 

1. The Committee welcomed the initiative by Stats SA for assisting students with internships and learnerships, and tracking of the progress of students who have acquired bursaries with the department. The Committee applauded Stats SA in absorbing most of the students who have enrolled at tertiary institution’s as a result of their bursary scheme. However, Stats SA is unable to retain most of the students, which attract and are highly demanded by the Banks.  

 

1. The Portfolio Committee recommends as follows:

5.1     That the House adopts and approve third quarter performance of the Budget Vote 12 of the Statistics South Africa.

 

Report to be considered